- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 5. Introduction to Geopolitics
- Subject 5. The Tools of Geopolitics
CFA Practice Question
Which of the following would least likely be classified as a geopolitical tool?
A. Natural tools
B. Financial tools
C. Economic tools
Explanation:
Natural tools are not geopolitical tools. Geopolitical tools are devices used by geopolitical actors to reinforce their interest with respect to others. There are three types of geopolitical tools that geopolitical actors use: national security, economic, and financial.
Financial tools are geopolitical tools used by geopolitical actors. They are used to reinforce cooperative and non-cooperative stances via financial mechanisms such as free exchange of currencies across borders or limiting access to local markets.
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